Section 15 AAC 19.1460 - Water's edge combination(a) This section applies to determine(1) which of the taxpayer's affiliates, that are engaged in international mobile property operations, meet the 20 percent United States factor test under AS 43.20.145(a)(1)(A) and (4) and must be included in the taxpayer's water's edge combined report; and(2) whether a taxpayer, that is engaged in international mobile property operations, meets the 20 percent United States factor test under AS 43.20.145(a)(1)(A) and (4) and must be included in the water's edge combined report of another affiliated taxpayer corporation.(b) When making the determination in (a)(1) of this section, the taxpayer shall use a days-spent-in-port ratio computed under (d) of this section, to attribute to the United States numerators a portion of each affiliate's property, payroll, and sales from international mobile property operations.(c) When making the determination in (a)(2) of this section, the taxpayer shall use a days-spent-in-port ratio computed under (d) of this section, to attribute to the United States numerators a portion of the taxpayer's property, payroll, and sales from international mobile property operations.(d) The taxpayer shall calculate the days-spent-in-port ratio on a ship-by-ship basis. The days-spent-in-port ratio is the number of days that each ship spends in United States ports during the tax year, divided by the total number of days that the ship spends in all ports during the tax year. Days spent in port are the hours spent in port, measured under 15 AAC 19.1410(c) - (d), divided by 24.(e) The United States property numerator includes the value, determined under AS 43.19, of each ship and any property used on, or in conjunction with that ship, that is used in international mobile property operations during the tax year, multiplied by that ship's days-spent-in-port ratio determined under (d) of this section for the tax year. When determining the total value of each ship and its related property, 15 AAC 19.1420(b) and (c) apply.(f) The United States payroll numerator includes the compensation paid to the crew, master, and officers of each ship that is used in international mobile property operations during the tax year, multiplied by that ship's days-spent-in-port ratio determined under (d) of this section for the tax year.(g) The United States sales numerator includes the tax year's gross receipts from mobile property operations everywhere for each ship that is used in international mobile property operations during the tax year, multiplied by that ship's days-spent-in-port ratio determined under (d) of this section for the tax year. The tax year's gross receipts from mobile property operations everywhere include the gross receipts described in 15 AAC 19.1440(b).Eff. 8/8/2007, Register 183In 2012 the revisor of statutes, acting under AS 01.05.031, renumbered former AS 43.20.071 as AS 43.20.143 and former AS 43.20.073 as AS 43.20.145. As of Register 204 (January 2013), the regulations attorney made conforming technical revisions under AS 44.62.125(b)(6), to 15 AAC 19.1460(a), so that cross-references to former AS 43.20.073 now refer to the renumbered statute, AS 43.20.145. In addition, the regulations attorney made conforming technical revisions to the authority citation that follows 15 AAC 19.1460, so that citations to former AS 43.20.071 and 43.20.073 now refer to the renumbered statutes, AS 43.20.143 and 43.20.145.
Authority:AS 43.05.080
AS 43.20.143
AS 43.20.145